The curve bull steepened on Thurs,.....>

US TSY/RECAP: The curve bull steepened on Thurs, with a relatively volatile end

to the session observed, on the back of month-end flows & option tied hedging.

T-Notes closed just back from best levels, comfortably higher on the day.

- Worries surrounding an Italian technical recession and a softer than expected

Chicago PMI release helped underpin. The U.S.-China trade talks yielded little

in the way of firm progress, but tones were generally warm, although U.S. TR

Lighthizer noted that there is still much to do. Trump tweeted that there will

be no firm deal until he meets with Chinese counterpart Xi, which was proposed

by Chinese representatives. Trump also wants "a big trade deal" or it will be

postponed. Xi stressed that he hopes that both sides can meet each other half

way. There is talk of up to another 2 meetings between the superpowers in the

pipeline ahead of the Mar 1 tariff deadline. IP matters and industrial subsidies

remain the key stumbling blocks, as well as enforcement of any end deal.

- Focus now turns to Friday's NFP report, with Fed's Kaplan also set to speak,

the first Fed speaker after this week's pivot to patience.

- T-Notes last 122.13+, U.S. 10-Year cash Tsy yields closed at 2.629%.